Sherwin-Williams Co (SHW)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,811,000 | 3,761,900 | 3,747,800 | 3,639,100 | 3,636,400 | 2,887,100 | 2,752,900 | 2,461,000 | 2,285,400 | 2,766,100 | 2,481,800 | 2,551,200 | 2,702,300 | 2,865,600 | 3,126,800 | 3,052,200 | 2,849,300 | 2,095,938 | 1,928,038 | 1,860,738 |
| Interest expense (ttm) | US$ in thousands | 415,700 | 411,800 | 410,300 | 411,200 | 417,500 | 431,200 | 430,500 | 411,700 | 390,800 | 367,400 | 349,300 | 339,900 | 334,700 | 331,600 | 330,400 | 334,400 | 337,400 | 339,400 | 342,782 | 344,480 |
| Interest coverage | 9.17 | 9.14 | 9.13 | 8.85 | 8.71 | 6.70 | 6.39 | 5.98 | 5.85 | 7.53 | 7.11 | 7.51 | 8.07 | 8.64 | 9.46 | 9.13 | 8.44 | 6.18 | 5.62 | 5.40 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,811,000K ÷ $415,700K
= 9.17
Sherwin-Williams Co's interest coverage ratio has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income.
Initially, the interest coverage ratio was 5.40 in March 2020, which increased steadily over the following quarters, reaching a peak of 9.46 in June 2021. This upward trend demonstrates the company's improving capacity to cover its interest expenses with its earnings.
However, from September 2021 to December 2024, the interest coverage ratio fluctuated within a range between 5.85 and 9.17. This fluctuation may indicate changing operating performance or debt levels within the company during this period.
Overall, the interest coverage ratio for Sherwin-Williams Co remained relatively healthy and above 1, indicating that the company has been generating sufficient operating income to cover its interest expenses, which is a positive sign for creditors and investors.
Peer comparison
Dec 31, 2024